MasterCard survey reveals consumer confidence in Qatar remains optimistic

This is according to the latest MasterCard Worldwide Index of Consumer Confidence survey. While confidence is slightly lower compared to the first half of 2009, overall results show that consumers in Qatar are still optimistic about Regular Income, the Stock Market, the Economy, the Quality of Life, and Employment for the next six months.

In line with the latest Index, MasterCard has also announced the results of the MasterCard Worldwide Survey on Consumer Purchasing Priorities.

Other Middle East and Levant markets which remain optimistic about the next six months include Lebanon (64.4) and Saudi Arabia (67.1).

Now in its 5th year in the Middle East and Levant, the MasterCard Worldwide Index of Consumer Confidence is the Asia/Pacific, Middle East & Africa's most comprehensive and longest running consumer confidence survey.

Released twice a year, the Index is based on a survey which measures consumer confidence on prevailing expectations in the market for the next six months. It is calculated based on percentage response figures, with zero as the most pessimistic, 100 as most optimistic and 50 as neutral.

The latest survey was conducted from 23 March to 18 April 2009 and involved 2,600 consumers from 6 markets. Data collection was via personal, telephone and Computer Aided Telephone interviews, with the questionnaire translated to the local language wherever appropriate and necessary. The Index and its accompanying reports do not represent MasterCard financial performance.

In Qatar, consumers remain optimistic 71.4 about the next six months; though less so than they were in the preceding period 76.2. The drop in consumer confidence is reflected in the areas of Regular Income, which dropped to 80.0 from 90.2 a period ago, Quality of Life, which dropped to 68.4 from 76.3 a period ago, the Economy, which dropped to 82.5 from 86.3, and Employment, which dropped to 73.3 from 78.4. Qatari consumers' confidence in the Stock Market (52.7 vs. 49.7 a period ago) has increased from six months ago.

The MasterCard Worldwide Survey on Consumer Purchasing Priorities, also released twice a year, provides valuable insights into consumers' savings and expenditure behavior and their discretionary spending priorities for the six months ahead. The survey is now in its second year in the Middle East and Levant.

"In Qatar, consumers remain optimistic about the future, which is quite encouraging given the economic challenges of today. For purchasing priorities, it is interesting that in Qatar, fashion and accessories, dining and entertainment, purchase consumer electronics and private tuition for children emerged as some of the most important priorities for consumers,"

said Raghu Malhotra, area business head, Middle East, Gulf Countries, MasterCard Worldwide.

Mr. Malhotra continued, "MasterCard is pleased to be conducting these surveys consistently as they underscore our commitment to be a credible source of knowledge for our customers, associates, and merchants as they develop their strategies for business success."

MasterCard Worldwide Index of Consumer Confidence

The Index is calculated based upon percentage response figures, with zero as the most pessimistic, 100 as most optimistic and 50 as neutral. Five economic factors are measured: Employment, the Economy, Regular Income, Stock Market and Quality of Life.

Consumer confidence in the Middle East and Levant is neutral at 49.9. The current Index is below the score from a period ago 72.7, a year ago 66.4 and the historical average 75.6.

• In the Middle East and Levant, all economic factors have declined compared to a period ago, especially the Stock Market which has dropped to 36.9 from 58.0 a period ago. However, the overall Index score for the Middle East and Levant 49.9 is higher than the Index score for Asia/Pacific 38.7.
• Consumer confidence in Qatar 71.4, KSA 67.1, and Lebanon 64.4 remains optimistic. However, current consumer sentiment in each market is lower than a period ago and, except for Lebanon, lower than the markets' historical average.
• Egypt has moved from optimism in the previous Index 55.6 to pessimism 32.3. Consumer sentiment about the next 6 months in both Cairo and Alexandria is pessimistic. Consumer sentiment has declined most sharply for Quality of Life (27.4 vs. 47.8 a period ago) in Cairo and the Stock Market (17.9 vs. 70.8 a period ago) in Alexandria.
• The Index scores for UAE (29.6 vs. 75.4 a period ago) and Kuwait (49.5 vs. 96.6 a period ago) have dropped noticeably. The overall decline is largely due to erosion of confidence in Regular Income (16.7 vs.91.6 a period ago) in the UAE and the Stock Market (25.4 vs. 93.0 a period ago) in Kuwait.

MasterCard Worldwide Survey on Consumer Purchasing Priorities

• Currently 29% of the consumers in Qatar are spending 51-60% of their total annual income on household expenses.
• In the Middle East and Levant, 55% of the consumers plan to maintain the same level of discretionary/recreation spending as the last 6 months. In Qatar 45% of the consumers plan to do the same.
• Across the Middle East and Levant, the top spending priorities are dining and entertainment (71%), fashion and accessories (49%), and consumer electronics (42%) in the next 6 months ahead. In Qatar, the top spending priorities are fashion and accessories (53%), dining and entertainment (51%), purchase of consumer electronics (24%) and private tuition for children in extra curriculum activities (24%).
• Across the Middle East and Levant, 73% of the consumers intend to save for precautionary reasons compared to the 83% in Qatar. In addition, in Qatar, 27% of the consumers are planning to save between 1-10% of their total income in the next 6 months.